Dennis Dahlberg - It Can't Get Better Than This!

Wednesday, March 6, 2019

7 Reasons to Take out an Arizona Bridge Loan

Here's the age-old conundrum for real estate investors — how do I move on to my next project if I haven't closed on the current one? The answer? Arizona Bridge Loans.

Fix-and-flippers and homeowners who are ready to move both face a common problem: they're in limbo until they can sell their current property. When the market isn't cooperating, that limbo can stretch into months and even years. For homeowners, that means not being able to move and, for investors, it can mean missing out on other investment opportunities.

Thankfully, there's a fairly simple solution to this problem. Arizona Bridge Loans are loans designed to bridge the gap between one asset and the next. In other words, you can keep your current asset (a home or Commercial property, for instance) while moving on to your next asset. Here are seven reasons you might want to consider an Arizona Bridge Loan:

You need to move your family to a new area of town (or out of town) for work, but your current home hasn't closed yet.
You need funds to jump on a can't-miss fix-and-flip.
You need to stabilize your cash flow to stay on track financially.
You need a stopgap while you wait for conventional funding to come through.
You need a better alternative to getting an equity partner.
You need a line of credit from which you can withdraw funds over 120 days.
You need to start construction as quickly as possible.

How Do Arizona Bridge Loans Work?

So how do these types of loans work? They are short term — as little as three months and as long as 12 months (and rarely even 24 months). At the end of the terms, you either pay off the loan in full or, more likely, use refinancing to roll it into a longer-term loan. They can come from banks or from private investors. Bank loans typically offer lower interest rates but are more difficult to qualify for, while private loans have higher interest rates but don't have the same strict qualification requirements.

Getting an Arizona Bridge Loan

Need an Arizona Bridge Loan to fund a new home, an investment opportunity, or a construction project? Here at Level4Funding, we've been helping fund real estate dreams for decades and we offer some of the most competitive rates and terms in the country. You'll see loans of up to 90 percent loan-to-value ratio, terms that run between three and 24 months, and rates as low as 7.99 percent.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Tuesday, March 5, 2019

Showdown: Banks Versus Commercial Colorado Hard Money Lenders

Finding financing for your Commercial real estate purchase or renovation can be confusing. Let's look at two common options for financing: the banks and Commercial Colorado Hard Money Lenders.

Banks are the tried-and-true option for financing, whether it's a mortgage, a small business loan, or a Bridge Loan. They're the first-place people think about when they consider getting funding. Like all funding sources, they come with a range of pros and cons.

On the positive side, banks are well-established institutions, so funding from them can be counted on as secure. Because they work in bulk and are backed by solid sources, they can offer some of the lowest rates in the country and their fees are usually comparatively minimal. Their terms are set in stone, which can be a double-edged sword. You'll know exactly what you're getting up front, but it doesn't leave much room for negotiation and doesn't allow them to tailor the loan to your situation.

Commercial bank loans are also quite difficult to qualify for. They have benchmarks by which they measure your risk. If you don't live up to them, you're out. You'll need a spotless credit score, a healthy account, and a financial history that's free from any blemishes. For this reason, bank loans are best for investors who have great credit and no foreclosures, short sales, or bankruptcies in their past.

The Pros and Cons of Going with a Commercial Hard Money Lender

One alternative to bank lenders are Commercial Colorado Hard Money Lenders. Colorado Hard Money Loans come from private sources, so they aren't as subject to regulations as funding from a bank or credit union. This gives them a variety of benefits. They're much easier to qualify for — hard money is secured by collateral, so lenders are less interested in your history and your credit score and more interested in your plans. Even if you've had a bankruptcy or foreclosure in your past, you may still qualify for hard money.

Colorado Hard Money Loans also come through much more quickly. You can get pre-approved instantly, approved completely in a matter of days, and have the money in your account in 10-15 days.

On the con side, Colorado Hard Money Loans come with higher interest rates and shorter terms, usually around one year.

Commercial Colorado Hard Money Lenders in Colorado

As Commercial Colorado Hard Money Lenders in Colorado, we offer some of the most competitive rates and terms in the country. Our Commercial loans go up to a 90 percent loan-to-value ratio, flexible 3-60 month terms, and low-interest rates. We can fund your development! Give us a call to get started.

3 Options for Getting a Colorado Commercial Real Estate Loan

Thinking about buying or renovating a piece of Commercial real estate? Unless you've got deep pockets, you'll need to find a Colorado Commercial Real Estate Loan to finance it. Here are a few options to get you started.

There's no such thing as a one-size-fits-all Commercial loan. They all vary in terms of the eligibility requirements, the amount you can get, how long it will take, and the rates. Here are a few of the most common:

Traditional Financial Institutions. Bank loans are the first thing most people think about when they consider getting financing. There's a good reason for that — they can usually get you more money, lower rates, and fewer fees. However, they can be really hard to get. Typically, they're reserved for people with a spotless financial history, a blemish-free credit score, and, in the case of Commercial properties, a profitable business.
Arizona Bridge Loans. Arizona Bridge Loans are short-term loans that are used to cover the purchase or renovation of a Commercial property. The interest rates are a little higher and the terms are shorter, but they are usually easier to qualify for. The idea is to get an Arizona Bridge Loan while you are waiting for other, longer-term financing.
Colorado Hard Money Loans. Hard money Colorado Commercial Real Estate Loans come from private investors, so they operate outside of the strict regulations of the conventional lending institutions. This gives them a number of distinct advantages over the banks. The qualification requirements are lower, the terms are shorter, and the process is much faster.

The Advantages a Hard Money Colorado Commercial Real Estate Loan

As we touched on above, Colorado Hard Money Loans are ideal for people who need to get their funding quickly and people who will be able to pay the loan back in a relatively short period of time. With a Colorado Hard Money Loan, you put property up as collateral, so lenders are less concerned about digging into your past or making sure your credit score is spotless. Of course, there is more risk for the hard money lender, so interest rates are higher than what you'd get with a bank loan.

Finding a Colorado Commercial Real Estate Loan

Opening or renovating a Commercial property in Colorado? You've come to the right place. We guarantee the best rates in the state on Colorado Commercial Real Estate Loans and we've been doing it for decades. Sit down with us today — we'll listen to your plans and find a way to help you get the financing you need.

Monday, March 4, 2019

Become a Successful Flipper Using Colorado Private Money Lenders

What's one of the biggest roadblocks for flippers? Getting the funding you need to jump on a great fixer upper. Here's how to use Colorado Private Money Lender to put that roadblock in your rearview mirror.

What exactly is private money lending? Private money is simply a way to refer to lenders and funding that occur outside of the traditional financial institutions. This could be virtually anyone including friends, family members, your doctor, or a co-worker. There are also lenders who deal solely with private money, connecting people who want to lend their money with people who want to invest in real estate by flipping.

Why would anyone want to lend their private money? Consider the alternatives. They can invest in the stock market. And they could win big, but they could also lose big. They never know what kind of return they'll get on their money. They could keep it in a savings account or a CD, but those options usually don't gain enough interest to even make up for inflation. They could go the old-fashioned way and keep in under their mattress, but that won't make any interest and opens them up to theft.

Conversely, a Colorado Private Money Lender can lend funds and know exactly what kind of return they'll get on their investment. And, in the case of flips, they know they can get their money back in a short period of time, typically under a year.

Why You Would Want to Work with a Colorado private money lender

Now we know why someone would lend their private money, but why would flippers want to go this route? After all, the interest rates are usually higher than the banks' rates. Again, consider the options. With a bank loan, you'll need to jump through all sorts of hoops to prove that you are worthy of the funds. That means having your credit score, bank account, and past history scrutinized to the nth degree. It also means waiting as much as a month or two to get your money, which is an eternity when it comes to closing on an investment property.

With private money, you can get approved in a day or two and have the money in your account in as little as 10 days. Plus, by working outside the system, you can negotiate terms with the lender that works for both of you.

Finding a Colorado Private Money Lender in Colorado

So how do you find a Colorado private money lender? It's not as hard as you think. In fact, you're already in the perfect place. We have decades of experience connecting real estate dreamers with the funds they need to make those dreams come true. Contact us today and we can talk about doing that for you.

The Straight Scoop: How Much Does It Cost to Get a Colorado Hard Money Loan?

Whether it's for a fix-and-flip, a spec home, or a rental property, if you're thinking about getting a Colorado Hard Money Loan, you'll want to know just how much it's going to cost you. To give you a ballpark idea, let's break down the terms, rates, and points on a typical loan.

Unlike banks, Colorado Hard Money Lenders use funds from private investors. Bank loan rates are often based on market conditions, but private loans typically use a variety of factors, from the value of the collateral property to the borrower's experience in the field. Because of the risk involved, hard money rates are usually higher than bank loans and can range anywhere from seven percent to 15 percent. On top of that, points are assessed, and these can range from 2 to 10 points (1 point equals one percent of the money being borrowed).

The rate and the points will be figured on a case-by-case basis and will be based on the down payment, the collateral, the borrower's experience, and the Loan-to-Value ratio (LTV). That is, the amount of money being borrowed compared to the appraised value of the property.

Let's say, for example, that Bill has a great credit score, a proven track record of completing and turning a profit on his flips, and is asking for an LTV of 60 percent. Bill is really likely to get a Colorado Hard Money Loan with a 7.5 percent interest rate and only two or three points. If he raises his LTV to 85, those numbers will likely increase.

Conversely, Jim has a lower credit score, has only one rehab under his belt, and also needs a 60 LTV. Jim's inexperience makes him a bigger risk for the private lender, so his interest rates will probably be closer to nine percent and he'll probably see three or four points. If Jim uses more leverage and wants to get an 85 LTV, he'll be looking at 10 percent or more on the interest rate and five or more on the points.

What Are the Advantages of Getting a Colorado Hard Money Loan?

While those rates may seem high, there are a number of advantages to going with hard money over a bank loan. Qualifications are much lower — if you don't fit in a bank's box, they will turn you down flat. A hard money lender can work with you to find a middle ground. Hard money also comes through in a matter of 10 to 15 days, while a bank loan can take much, much longer.

Colorado Hard Money Loans in Colorado

Need a Colorado Hard Money Loan in Colorado? We've got you covered. We offer some of the best rates in the business and can get you pre-qualified in a matter of seconds. So, what are you waiting for? Give us a call today to see how we can work together.

Colorado Hard Money Lenders: Scam Artists or Dream Makers?

Let's face it — many people hold a negative view of Colorado Hard Money Lenders. But is that reputation well-earned or unfair? Let's take a look.

First things first. What exactly is hard money? Hard money is money that's lent by private investors operating outside the traditional banking system. Among other things, hard money can be used to fund a fix-and-flip, pay for a renovation, or purchase a rental property. Borrowers put up property as collateral — either a current property or the one they intend to purchase — to secure the loan. If things go south, the investor has the collateral to back up the loan.

Colorado Hard Money Lenders may have gotten a bad reputation over the years because of a few unscrupulous individuals who took advantage of the fact that they work outside the system. In the past, some would offer loans with terms that made it virtually impossible for the borrower to pay the loan back. Thankfully, these predatory practices are very much a thing of the past, especially after the housing debacle of 2008 that launched the recession.

These days, lenders in the hard money business are there to help fund people's real estate dreams. They're here to offer a more personal touch and give people who've been turned down by the banks a chance at redemption.

Advantages and Disadvantages of Colorado Hard Money Loans

Colorado Hard Money Loans offer a range of advantages and disadvantages compared to traditional bank loans. Their interest rates are often much higher and can be anywhere from seven to 15 percent. Their terms are also much shorter; usually around one year. However, they are also much easier to qualify for. Private investors are much more interested in your plans and the property than your credit score and past history. Colorado Hard Money Loans are also much, much faster than bank loans. With a bank loan, there are countless hoops to jump through and tons of red tape to deal with. With hard money, you can get approved in a day or two and have funds in as little as a week or two. That a distinct advantage when it comes to jumping on a real estate opportunity.

Getting a Colorado Hard Money Loan Today

Looking for a hard money lender in Colorado? You're already int he right place. We guarantee the best rates in the area and we offer flexible terms to fit almost any investment opportunity. Give us a call today and let's talk about your dreams!